Archive for June, 2007

Published: June 25, 2007 LOS ANGELES, June 24 — The iPhone doesn’t go on sale until Friday, but Steven P. Jobs, the chief executive of Apple, is already changing the perception of the mobile phone, from a quick way to call a friend to a hip, media-friendly device. In doing so, he has forced mobile phone and Hollywood executives to react by chasing hungrily after the newest thing or face being left behind.

Paul Sakuma/Associated Press

A touch-screen pad used in cellphones from LG Electronics. As cellphones become Web friendly, consumers may bypass wireless carriers.

Mobile phone makers are scurrying to offer new products to compete with the iPhone’s touch screen. Wireless carriers also seem more willing to listen to their partners’ advice. And in Hollywood, where Mr. Jobs’s convention-defying tactics are all too familiar, media executives are eagerly preparing for a new era as they hope to position more content where consumers want it: in their hands.

Two years ago, David Ulmer, senior director of entertainment products at Motorola in Sunnyvale, Calif., and his colleagues got a “no, thank you” from wireless carriers when they tried to pitch a mobile phone with a touch screen. “Now, we are finding it easier to get people to talk to us,” Mr. Ulmer said. “Apple has changed the perception of how sexy a phone can be. Now, everyone wants to get in. It’s a whole new world. We’re in talks with everyone, Universal Studios, Time Warner, you name it.”

But perhaps the biggest shift is the notion that in the not-too-distant future, these various groups — which have worked together uneasily so far — could find themselves as competitors as consumers demand more and better access to media and care less about how they get it.

For years, mobile phone carriers like AT&T, Verizon Wireless and Sprint have closely controlled what cellphone users watch, when they watch it, and on what kind of screen they watch it — much the way the networks did with television before new technologies loosened their grip. Many in Hollywood and Silicon Valley hope the iPhone’s multimedia features will make it easier for any mobile-crazed consumer to do the same things they do on the Web: watch their favorite television shows, download maps, send e-mail messages to friends and swap videos.

In what is the beginning of many attempts to make the cellphone more Web friendly, Apple has designed its own application so consumers can receive YouTube videos through a Wi-Fi network. Industry executives predict that as it becomes easier to get information via Wi-Fi networks, more consumers will bypass traditional wireless networks altogether. That prospect, while helpful for phone makers and media concerns, is frightening for service providers if consumers begin to regard them as irrelevant.

“Video, particularly, has largely been behind a wall,” said John Smelzer, the general manager of mobile operations for Fox Interactive Media, referring to the limited and clumsy access most consumers have to news, sports and entertainment on traditional cellphones. “It’s the antithesis of what’s happening on the Web. Any device that replicates the experience online is good for the entire industry. It will help us reach a mass audience,” he said.

Even Mr. Jobs’s competitors, who are quick to point out that the iPhone has limitations, like its sole availability through AT&T, say that it will nudge resistant wireless carriers to pay more attention to their customers’ wishes. “The iPhone is a fantastic device, but they don’t control the network,” said Craig Shapiro, head of content strategy and acquisition for Helio, the mobile phone maker and service company. “For these things to work, though, everyone has to get with the program.”

Communications companies know they have to adapt or risk being left behind. Glenn Lurie, president of national distribution for AT&T’s wireless business, said in an interview that it took an outsider like Mr. Jobs to generate interest in mobile’s potential that the industry could not muster itself. “The wireless industry has been around 20 years, and people have found the industry to be somewhat complex,” Mr. Lurie said. “Steve Jobs and the Apple team come at it from a different perspective.”

Most important, owners of Apple products stay faithful. A recent article in the Harvard Business Review said, by contrast, that in the consumer electronics category, customers of mobile phone services were among the most dissatisfied. Pricing plans and services were too confusing. Contracts were restrictive. Service among some carriers was unpredictable. And early attempts to offer video proved more frustrating than compelling.

“They don’t make it easy,” said Bill Sanders, vice president of mobile networks programming at Sony Pictures Television International. “Everyone I talk to says, ‘There are all these things that are wrong with the iPhone.’ But consumers can’t wait to get their hands on it. That’s because Apple makes it easy.”

This will not be Mr. Jobs’s first experience in redefining an industry. Many executives in the beleaguered music business hailed Mr. Jobs as a savior when the iPod was introduced in 2002 because it was an alternative to the illegal online sharing of songs. Three years later, though, they derided him in a war over pricing.

Film executives, who watched Mr. Jobs’s relationship with the music industry sour, have been more cautious in their dealings with him. In particular, major studios, including Warner Brothers Entertainment and 20th Century Fox, have resisted Mr. Jobs’s overtures to put movies on the video iPod unless he guaranteed copyright protection and reduced prices.

So far, Apple and AT&T are getting along. But even Hollywood blockbusters can have a surprising ending. “All I can speak to is that working with the Apple team for two years, the relationship has been terrific,” Mr. Lurie said. “I can’t speculate what will happen down the road.”

To be sure, all the parties in the three industries involved are circling each other warily as they seek to protect their overlapping interests. But as their ambitions collide, rivals are hiring talent from disparate fields to navigate through a unsettling era.

Cingular Wireless, which merged with AT&T, has lost a number of executives who left to join start-ups or television production companies. Among them is Jim Ryan, who helped develop mobile video at Cingular. He left in May to become chief executive of Mobile Campus, a messaging service for college students. Last year, Jon Vlassopulos, a former senior director of business development at Cingular, joined the television production company Edemol USA as a new-media executive.

A background in movies is proving valuable, too. Sherry Lansing, the former chairman of the motion picture group of Paramount Pictures, was elected to Qualcomm’s board last year, sought after for her keen knowledge of Hollywood. More recently, Christine Peters, the producer of “How to Lose a Guy in 10 Days,” was named to the board of Xero Mobile, a fledgling cellphone service aimed at college students.

“Filmmakers are not going to be happy having their films downloaded to cellphones with poor quality,” Ms. Peters said. “That’s the beauty of the iPhone. It’s simple and it looks good. Half the people who have these fancy cellphones don’t know how to use them.”

 

28
Jun

Apple Now Third-Largest US Music Retailer

   Posted by: mwatkins    in Publishing News

NEW YORK (Reuters) - Apple Inc.’s (AAPL.O: Quote, Profile, Research) digital music store iTunes is now the third-largest music retailer in the United States with 10 percent market share, overtaking Amazon.com in the first quarter, according to a survey released on Friday.The NPD Group report highlights the growing strength of digital music in the U.S. market as physical sales of compact discs continue to slide.

Apple’s iTunes is third behind market leader Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research) with a 15.8 percent share, and Best Buy Co Inc. (BBY.N: Quote, Profile, Research) with a 13.8 percent share, according to the survey of 40,000 people aged 13 and older.

Both of those retailers mostly sell music in the CD format. Online store bestbuy.com has a 1.1 percent market share with sales of both CDs and digital music..

Amazon.com Inc. (AMZN.O: Quote, Profile, Research) dropped to fourth with a 6.7 percent share. Its sales increased but not as fast as rivals.

Amazon also sells music mainly in the CD format, but last month it said it plans to start selling digital music later this year but without copy protection software such as that used by iTunes.

NPD said the iTunes digital music store had benefited from sales of Apple’s iPod digital music player during the holiday season. The vast majority of digital songs and albums bought on iTunes will only play on iPods, as well as the iTunes PC application.

iTunes last month rolled out a new service called iTunes Plus which sells higher quality digital songs without copy protection at a premium price.

NPD analyst Russ Crupnick said that iTunes had also benefited from the slowdown in CD sales, the dominant format for recorded music sales.

According to sales data from Nielsen SoundScan, first quarter sales of music CDs were down by more than 20 percent year-on-year, a trend analysts don’t expect to change.

“With only a couple of weeks remaining in the second quarter, industry CD sales have shown only marginal improvement over first quarter levels,” said Richard Greenfield, analyst at Pali Capital in a note to clients on Thursday.

Though Wal-Mart is the top U.S. music retailer, it carries a relatively narrow selection of CDs. Some analysts believe its rivals are likely to consider a similar strategy.

“Anecdotally we’re hearing they’re beginning to think about cutting back on retail space for physical (music),” said Crupnick. “But in the near term retailers like Wal-Mart and Best Buy are going to continue to be powerhouses.”
By: Yinka Adegoke, Reuters

More than 55,000 music fans of all ages turned out for this past weekend’s inaugural STAGECOACH. Billed as California’s Country Music Festival, the critically-acclaimed, two-day concert, held at the Empire Polo Field in Indio, drew upon the music of various genres:  main stream country, bluegrass, folk, roots rock and alt-country. With more than 60 acts on four distinct performance areas (the Tundra Mane Stage; along with the Palomino, Appaloosa and Mustang stages), there was something for everyone.

Beyond the music, concertgoers could also sample tastings from a BBQ cook-off, ride a mechanical bull, view country music memorabilia at the Honky Tonk Hall of Fame, experience a trail boss seminar, and enjoy the sights and sounds of the children’s Half-Pint Hootenanny area.

With 2,200 RVs set up in a camp area adjacent to the festival grounds, attendees eased into the venue early in the day after enjoying the campground amenities concert promoters, Goldenvoice, had put in place to make their weekend enjoyable. From a movie screening on Friday night to a gospel choir on Sunday morning, there was plenty to do even before enjoying two jam-packed days of music.

Url: http://www.stagecoachfestival.com

Throughout the storied life and career of American musical icon Willie Nelson, his sister Bobbie has been right next to him, playing the piano that is as essential to his musical style as “Trigger,” his well-worn Martin guitar. And now Bobbie Nelson moves into the spotlight at stage center with her debut solo album, Audiobiography, on Justice Records.

The 12-song album features Bobbie Nelson playing solo piano versions of some of her favorite songs from throughout her life and begins and ends with two new songs written by Willie Nelson, who joins his sister on guitar and vocals. Bobbie produced the album and Willie co-produced the songs he appears on with her. Audiobiography was recorded at the world-renowned Pedernales Studio outside Austin that was founded by Willie Nelson and is now owned and operated by Bobbie’s son, Freddy Fletcher, who also mixed the album.

Bobbie Nelson’s recording debut was inspired by a conversation that Justice Records founder and A&R director Randall Jamail had with her while they were having lunch one afternoon at an Austin restaurant. “I asked her if she had ever thought about writing her autobiography,” says Jamail. “She said that people had asked her that before, but the only way to tell her life story was through music.”

The comment prompted Jamail to suggest that she record her first solo album for Justice, the Houston, Texas-based independent label that previously released two Willie Nelson albums, the Grammy-nominated “Moonlight Becomes You” and “Just One Love,” as well as the Nelson tribute compilation “Twisted Willie.” Bobbie Nelson joins Ian Moore and Great Gaines on the roster of the recently reactivated Justice label, which is distributed by Fontana Records via Universal Music.

Justice Records was started by Jamail in 1989 and has since released albums by a blue-ribbon roster of country and jazz artists. Among them are such outlaw country compatriots of Bobbie and Willie Nelson as Waylon Jennings, Kris Kristofferson and Billy Joe Shaver as well as Kimmie Rhodes, a longtime friend and neighbor of the Nelsons. The label has also recorded noted jazz artists Herb Ellis, Kermit Ruffins and Sebastian Whittaker and The Creators. It released Ray Price’s acclaimed Prisoner Of Love CD and The Papal Concert to Commemorate The Holocaust, and launched the career of indie country sensation Jesse Dayton.

Living up to its name, the Justice is now a label where all of its artists own their master recordings. “Our slogan used to be ‘Recycle Paper Not Music,’” says Jamail. “Now it’s ‘Freeing the Slaves One Record at a Time.’”

“I’m really excited about working with Justice Records,” Nelson says. “I’m really close with Randall and that makes it real comfortable for me. And I’m thrilled to be putting out my own record.”

“Everyone at Justice is honored to be working with Bobbie Nelson,” says the label’s general manager Jan Mirkin. “I’d actually be honored just to drive her around.”

Bobbie Nelson will be playing songs from Audiobiography in featured solo sets on tour with Willie Nelson and Family following the release of the album this fall.

Url: http://www.myspace.com/bobbienelsonmusic

21
Jun

MySpace/Yahoo! Deal

   Posted by: mwatkins    in Publishing News

News Corporation and Yahoo! are reportedly in talks regarding the possibility of News Corp. trading MySpace to Yahoo! in return for an approximately 30% stake in a combined company. Yahoo! is currently worth around $37 billion, meaning a 30% stake would translate to over $11 billion. News Corp. purchased the social networking site in 2005 for $580 million. The story was initially reported in The Times of London, also owned by News Corp.

13
Jun

Webcasting Royalties: Recent Stuff

   Posted by: mwatkins    in Publishing News

The scuffle over webcasting royalties is a topic I’ve followed but not posted much about. Here’s a recap of some recent goings on:

• The proposed change in webcast royalties rates contains a minimum annual fee of $500 per streamed channel. Previously, that administrative fee was capped at $2,500. Now a webcaster with, say, ten radio channels will owe a minimum of $5,000. A webcaster such as Last.fm, with an incredible number of channels, will owe a significant amount of money. Webcasters are starting to make some noise about this provision.
• Last month, SoundExchange offered a compromise to small webcasters that would allow them to pay what SoundExchange called temporary, below-market rates.
• Radio Ink had an article today about a letter-writing campaign from a trio of webcasters — CEOs of RealNetworks, Live365 and Pandora — to every member of Congress.
• In yesterday’s Los Angeles Times, attorney Jay Rosenthal and publisher Kurt Hanson debate webcasting. (Los Angeles Times)
• Jeff Leeds has an article about the changes in webcasting rates and the growth in online radio in today’s New York Times.